American Educators Life Insurance Company (Ala.)
Receiver Files Petition to Close Estate
On Jan. 4, the receiver filed a petition in the Circuit Court for Pike County, Ala., for approval of the receiver’s plan to close this receivership and distribute its remaining assets. The petition indicates total remaining assets to be approximately $660,000, all of which will be distributed to the affected guaranty associations (Alabama, Georgia, and Louisiana). A hearing on the petition is scheduled for Feb. 20.
American Educators was affiliated with Alabama Life (Ala.) and Consolidated National Life (Ind.) Insurance Companies. If the receiver’s petition is approved, American Educators will become the second of these three cases to close (Consolidated National closed in 1999).
Staff Contact - Paul Peterson First National Life Insurance Company (Ala.)Appeal of Final Judgment on Claims
In the Dec. 14, 2001, issue of the Wire, we reported the receivership court’s Dec. 10 order confirming the allowance, disallowance, and priority treatment to be afforded each of the outstanding claims against the FNLIC estate. Since that time, additional creditor challenges have been raised that may result in delays in closing this estate.
On Jan. 7, FNLIC’s parent company filed a motion to alter, amend, or vacate the Dec. 10 order, asking that the court reopen the evidence and permit full discovery with respect to its claim. That motion was denied, and final judgment was entered on Jan. 10. Shortly thereafter, a notice of appeal of the Dec. 10 order was filed on behalf of another creditor whose late-filed claim was denied as untimely. The appeal period for this order remains open until Feb. 21, and additional challenges may still be filed. The task force will continue to monitor developments with respect to this litigation.
Task Force Chair - Michael Marchman; Staff Contact - Joni ForsytheVariable Products Panel Slated for MPC Meeting
A presentation on variable products and the challenges they present to the guaranty system will be one of the highlights on the upcoming MPC Meeting, which will be held in Savannah, Ga., on Jan. 29–31.
Variable Products: A Survey of What's New, How the GAs Assess Them, and Coverage Issues is being presented by NOLHGA’s Administrators’ Education Steering Committee. A panel of industry experts will discuss various topics, including the characteristics of variable products, how the marketplace approaches them, the issues these types of products raise with respect to guaranty association coverage, and how guaranty associations currently assess their member companies for premiums they receive from variable products that have some policy benefits that may be covered by the associations.
The panel will be moderated by Chuck Gullickson (South Dakota), chair of the Administrators’ Education Steering Committee. Gullickson will be joined by Dave Perry of the Montana Life and Health Insurance Guaranty Association; Dennis Hewatt, national sales manager with Nationwide Financial Services, Inc.; Paul Peterson from the NOLHGA staff; and Kevin Griffith of Baker and Daniels.
The Variable Products presentation will take place at 10:15 a.m. on Thursday, Jan. 31, during the MPC General Session.
Staff Contact - Sean McKennaLaFalce Plans To Introduce Optional Federal Chartering Legislation
Congressman John J. LaFalce (D-N.Y.) has sent a letter to congressional colleagues seeking cosponsors for optional federal chartering legislation known as the Insurance Industry Modernization Act. LaFalce’s letter follows the introduction of a federal chartering bill (the National Insurance Chartering and Supervision Act) in the U.S. Senate by Sen. Charles Schumer (D-N.Y.) late last year.
While the LaFalce bill has not been introduced in the House and so is not yet available for review, the letter seeking cosponsors for the possible legislation summarizes some of the key elements of the bill. According to the letter, the Insurance Industry Modernization Act, which is like the Schumer bill in this respect, would require national insurers to maintain membership in state guaranty associations, with a federal fallback mechanism for states that do not meet minimum insolvency protection standards.
The Wire will continue to cover developments with respect to optional federal charter legislation in coming weeks.
Staff Contact - Sean McKennaNew GA Contact Info
The office for the Minnesota Life and Health Insurance Guaranty Association has moved. The association’s new contact information is:
Minnesota Life and Health Insurance Guaranty Association
4760 White Bear Parkway, Suite 101
White Bear Lake, MN 55110
651.407.3149
FAX: 651.407.3150
Also, Clayton Rudd, chairman of the Idaho Life and Health Insurance Guaranty Association, can now be reached via e-mail at [email protected].
Staff Contact -No Wire Next Week
Due to the MPC Meeting next week, the NOLHGA Wire will not publish on Feb. 1. Coverage of the Savannah MPC Meeting will appear in the Feb. 8 issue of the Wire.
Staff Contact - Sean McKenna